Source: Shutterstock
Overview
Mexico is a country located on the southern portion of North America between the United States and Central America. It is bathed by both the Pacific and Atlantic Ocean and has over 7600 of square miles of area (13th largest country in the world). Discovered by the Spanish, Mexico area was historically occupied by many intertwined civilisations such as the mayans, aztecs, olmecs and more.
Mexico has a Gross Domestic Product (GDP) of 1,273 trillion USD (15th in the world) and aHuman Development Index (HDI) of 0,779 (86th in the world and 9th in Latin America). Mexico also has a literacy rate of roughly 95.2%, and 21% of students that enter primary school are expected to graduate from college, also 10% of the population is considered English speakers. The greater part of this 10% are located near the border with the United States.
For economics, Mexico is forecasted to benefit a lot from the nearshoring opportunities that are appealing for companies in the US, China and other asian countries. After the Covid-19 world crisis and the Russia-Ukraine war, organisations are tempted to invest in Latin America, especially Mexico. Transferring operations for countries that are closer to their territory, are unlikely to get involved in wars, have lower labour costs and the benefits of free trade agreements are all great reasons for these types of moves.
| Capital | Mexico City |
| Languages spoken | Spanish |
| Population size | 126.7 million |
| Payroll frequency | Monthly/Bi-Monthly |
| Currency | Mexican Peso (MXN) |
| VAT | Standard VAT of 16% / 8% reduced at Southern and Northern borders / 0% exports, medicine, milk, wheat, meat and corn and a few agriculture services |
Payroll and taxes
Employer contributions in Mexico
The contributions that employers are obliged to make are the following:
- 26.54% to 33.58% to Social Security (IMSS) - Annual contribution is up to 166,174 MXN
- 5.15% for Retirement
- 5% for National Housing Fund
In total, it ranges from 36.69% to 43.72% of employment cost for each employee. It is ranked as one of the countries with the highest employer taxes in the world.
Employee contributions
There are a few full-time employee contributions that workers are obliged to pay in Mexico. The list is the following:
- 1.65% - Social Security (IMSS) - Annual contribution is up to 23,804 MXN
- 1.125% - Retirement Insurance
In total, it’s equal to 2.775% of employees' salary, one of the lowest rates in the world.
Personal income tax
When it comes to personal income tax, the rates grow according to how much someone makes every month. Check out the table below for the full list of rates:
Minimum Wage in Mexico
The current minimum wage in Mexico is 207.44 MXN as a daily minimum wage, which corresponds to 326.4 USD monthly. Minimum wage has a higher value in the Northern Border Zone, a region of Mexican states that border the United States. In this area, the rate is 312.41 MXN daily, equal to 505.7 USD.
Employee Benefits in Mexico
13th-month salary
In Mexico, employers are required to make a 13th-month salary payment, also known as Aguinaldo, which is a bonus paid out by December 20th each year. The Aguinaldo amount is calculated based on 15 working days of salary and an additional allowance, which is based on a 365-day year.
Attracting talent in Mexico
The competition to attract top talent is a global phenomenon, yet its outcome varies across different regions and nations. Working for an organisation that is aligned with what you believe and your practises are valued a lot in Mexico. Check out a few points that could make the case for attracting the best talent in Mexico.
Reinforcing company culture
In today's job market, many companies offer similar compensation and benefits packages., therefore reinforcing company culture can help to differentiate a company from competitors and create a more compelling employer brand.
Another important thing that comes in the equation is the fact that the workforce nowadays place more emphasis on values, beliefs, behaviours, and practices that shape the way people work together within an organisation. Candidates are more likely to be attracted to a company that aligns with their values and provides them with a positive work environment.
Recruitment Marketing
Recruitment marketing is the process of using marketing tactics to attract, engage, and nurture potential job candidates. It involves creating and implementing targeted strategies to build awareness of job opportunities, promote the employer brand, and attract top talent.
This strategy is becoming increasingly important in today's job market, as competition for top talent intensifies and candidates have more options than ever before. By leveraging marketing techniques such as social media advertising, email campaigns, and content marketing, recruiters can create a more compelling and personalised candidate experience while delivering the best results for their businesses.
This area has been receiving a lot of investment from companies. The 2022 Rally Recruitment Marketing Job & Salary Survey showed that recruitment marketing managers expect their area's budget to increase up to 35% by next year and 28% of them are consideringspending more money on recruitment marketing tech (such as softwares, apps and other digital tools).
Work Stability
After the impact of Covid-19 and the uncertainty of this period, the Mexican workforce have started worrying more about stability. A Universum survey conducted in Mexico in 2020 revealed that secure employment was the second most important factor on a job opportunity, just behind professional training and development and ahead of future monetary earnings and advantages.
This trend shows that programs that enhance job security and measures intended to mitigate the risk of layoffs are appreciated by the workforce and can play a major role in attracting the talent companies need. If people feel more \ secure at their positions -especially in difficult times-, they are more likely toto want to stay with the company, not only will they be able to focus more at their jobs without the fear of job uncertainty looming over their heads, they are also more likely to want to stay on with a company that makes them feel safe.
Talent acquisition
At Airswift, we offer our expertise in sourcing high-quality talent from Mexico to support your business. With deep knowledge across multiple industries, we can quickly and precisely identify top talent. To assist you in finding the best candidates for your organisation, we can assign a local recruitment consultant dedicated to your business needs.
In addition to our talent sourcing services, we also offer support for short-term contract hires and flexible working arrangements. Our extensive database of qualified contractors ensures that your business will have access to the best talent available. Count on us to help you find the right candidates for your temporary or project-based staffing needs.
Our team of experienced recruitment specialists can also assist your company with permanent staffing needs.
We are dedicated to finding the ideal employees in Mexico who align with your corporate culture. You can trust us to identify and recruit top talent that can make a lasting impact on your organisation.
Employer of record
Airswift can help your business recruit Mexican employees without the need for setting up a local office. We can act as an Employer of Record (EOR) in Mexico and hire employees on behalf of your organisation.
This allows you to focus on running your business without the hassle of managing administrative tasks such as salary payment, payroll management, and employee benefits. By partnering with a third-party EOR, you can bypass the need for a physical office while we handle all administrative duties.